TLDR
- SEC Clears 2Z Token: DePIN Projects Get Green Light for U.S. Compliance
- 2Z Token Not a Security, SEC Confirms in DePIN Regulatory Milestone
- SEC Gives Go-Ahead to DePIN Tokens Like 2Z With No-Action Letter
- DoubleZero’s 2Z Token Escapes SEC Scrutiny, Boosts DePIN Momentum
- DePIN Tokens Gain SEC Clarity as 2Z Ruled Functional, Not Speculative
The U.S. Securities and Exchange Commission has formally signaled that DePIN tokens, including DoubleZero’s 2Z token, do not qualify as securities. This development follows a no-action letter issued by the SEC, clarifying its stance on the regulatory treatment of Decentralized Physical Infrastructure Network tokens. The decision provides much-needed clarity for DePIN participants and indicates growing alignment between regulators and blockchain infrastructure projects.
DoubleZero’s 2Z Token Cleared Under No-Action Guidance
The SEC confirmed it will not pursue enforcement action against the DoubleZero Foundation over its upcoming launch of the 2Z token. The agency determined that the 2Z token did not meet the criteria for securities under existing U.S. laws. It also emphasized that the token distribution is not designed to raise capital or profit from managerial efforts.
According to the DoubleZero protocol, participants contribute unused private fiber infrastructure and receive 2Z tokens in return. The SEC acknowledged that such programmatic distribution models are not investment contracts. The agency concluded the 2Z token does not need to be registered as a security.
This confirmation marks one of the clearest SEC endorsements for DePIN projects to date. It also signals regulatory flexibility toward decentralized physical infrastructure platforms that rely on community participation.
SEC Recognizes DePIN Tokens as Functional Rewards
SEC Commissioner Hester Peirce supported the move, noting that DePIN tokens serve as functional compensation rather than speculative assets. She explained that the traditional Howey Test does not apply because DePIN tokens reward labor or services—not passive investment. The tokens also lack equity-like features and do not offer a claim on any future profits.
The SEC described the token model as economically distinct from traditional capital-raising ventures. This distinction helped remove 2Z from the category of securities. Peirce emphasized the importance of allowing infrastructure projects to operate without being burdened by securities regulation.
The SEC’s updated posture reflects the Trump administration’s stated aim of easing regulatory obstacles for digital innovation. As a result, DePIN token models that prioritize utility over speculation may now operate with less legal ambiguity.
Regulatory Shift Encourages Broader DePIN Growth
DoubleZero’s case sets a regulatory precedent that other DePIN projects can reference for future token launches. The 2Z token approval could encourage broader adoption of blockchain-powered infrastructure networks in the U.S. The decision signals a potential shift away from “regulation by enforcement” toward clear, consistent guidance.
DePIN networks compensate users for contributing physical resources like bandwidth, sensors or connectivity hardware. These contributions support decentralized, community-owned infrastructure systems. Participants are rewarded based on real performance metrics, not investment expectations.
This regulatory milestone reinforces that DePIN models are infrastructure-focused and do not aim to fundraise through token sales. With the SEC’s support, DePIN ecosystems can continue to build decentralized connectivity solutions while remaining compliant with U.S. law.
